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Summary of Incentives and Subsidies for Renewable Energy Products by MNRE

Incentives and Subsidies for Renewable Energy Products by MNREIndia’s energy demand has been growing rapidly as a result of the industrial growth as well as the rise in household energy consumption. India ranks 6th in the world in terms of energy demand accounting for 3.5% of the total world commercial energy demand in 2001 (Planning Commission of India). Most of the energy requirements in India are being fulfilled by fossil fuels that further increase our dependency on imports. To overcome the issue of energy security, Government of India is supporting increasing involvement of renewable energy sources in the total energy mix.

As per the latest announcement, there are a number of financial incentives and subsidies by the Ministry of New & Renewable Energy (MNRE). These incentives and subsidies are applicable for a number of renewable energy products available in the market.

Details of the products with their average cost and subsidies are given below:

Sr. No. Name of the Product Cost Range(in Rs.) MNRE Subsidy(in Rs.)
 1 Solar Water Heating Systems (2 Sq. Meters)

13,000 – 20,000

    6000 – 6600
 2 Solar Cookers
a)Box Type Solar  Cooker
b)Dish Type Solar Cooker
c)Scheffler Dish  Cooker
a)3,500 to 4,200
b)6,500 to 8,000
c)15,000 to 20,000 
30% of the product cost   (Maximum).In Special Category States

60% of the product cost (Maximum)






 3 Solar Home Lighting Systems 11,000 – 15,000
 4 Solar Street Lighting Systems 17,000 – 22,000
 5 Solar Lanterns 1700 – 3000
 6 Solar Pumps

1,70,000 / kW

 7 Family Type Biogas Plants (2 Cubic m)

20,000 to 25,000

8,000 to 14,700 (depending upon location)
 8 Small Wind Turbines for off-grid applications

2,00,000 / kW

Up to 120,000 /kW
 9 Water Mills

70,000 – 80,000



Source: MNRE, Press Information Bureau


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